Given significantly growing demand for land and factories among investors relocating their operations to Vietnam, Sonadezi Long Binh (SZB) has developed its bank of industrial factories in Dong Nai and Ba Ria – Vung Tau that will be available for lease in 2021.
On its development of factories for lease, a representative of Sonadezi Long Binh stated that there were quite a few large FDI enterprises, followed by other companies in their value chain, that are relocating or expanding their operations in Vietnam. Small and micro enterprises exploring investment opportunities and have entered in the Vietnamese market are quite interested in ready-built factories and warehouses which would enable them to lower start-up costs and time, and quickly begin their operations. Therefore, Sonadezi Long Binh took steps in 2020 needed to benefit from new investment flows and diversify its product portfolio to meet customer needs.
According to expert analysis, in a typical logistic cost structure, property rent accounts for less than 5% but transportation costs up to 50%. Therefore, in its strategic development of factories for lease, Sonadezi Long Binh firstly looks at convenient locations to save transport costs and time for its tenants. Specifically, Sonadezi Long Binh is investing in industrial factories for lease in Thanh Phu Industrial Park and Chau Duc Industrial Park which are both conveniently located with transport connectivity to lower transport cost for its tenants.
Factories in Chau Duc Industrial Park
With these advantages, coupled with the scarcity of industrial land bank as most of local industrial parks have been occupied, Thanh Phu and Chau Duc Industrial Parks are strategic options for new investors or those planning to expand their operations, chain of factories and satellite factories. These are also particularly suitable for ancillary businesses in the value chain of large corporations that have developed and will establish factories in Vietnam.
Currently, for Thanh Phu Industrial Park, Sonadezi Long Binh is partnering with a number of investors who wish to hire large-scale two-storey factories built according to their requirements. Besides, the company is developing a cluster of factories for lease in its phase 1 in Chau Duc Industrial Park covering an area of about 10,000 m2, which is about to be launched in Q2/2021.
Factories in Thanh Phu Industrial Park
“With its relatively large and clean land bank in Dong Nai and Ba Ria – Vung Tau which were in the Top 10 provinces in terms of investment inflows in 2020 and previous years, Sonadezi Long Binh is benefiting from the reputation of and development of transport infrastructure in these two provinces, including national key projects such as Long Thanh International Airport, expressways or deep-water ports, etc.. However, for us, it is most important to promote Sonadezi Long Binh’s brand reputation and develop products that best address the needs of customers in the new context. This will enable our investors to cut costs and maximize profits for stable operations and sustainable development”, said a representative of Sonadezi Long Binh.
